There are fears that hundreds of jobs could be lost at Haribo in West Yorkshire.
The confectionery company, which has factories in Pontefract and Castleford, has confirmed it has begun discussions with staff about proposals to "protect the long-term future of Haribo manufacturing" in the UK.
Jon Hughes, managing director of Haribo UK, said the proposals were in response to demands from rising costs and a competitive market.
He added: "Our priority now is our colleagues. We will provide all the support necessary as we consult with them about the best way to protect the future of Haribo in the UK."
Yvette Cooper, MP for Normanton, Pontefract and Castleford, described the news as "grim" and said the area needed urgent help from the Government to see how jobs can be saved.
Liberal Democrat Parliamentary Spokesperson for Normanton, Pontefract & Castleford, Councillor Tom Gordon, has called for action from the Local Authority, Unions, and MP.
He said Haribo's Managing Director had agreed to speak with him next week.